Eight years after Massachusetts passed an unworkable and overly-restrictive direct shipping bill, and four years since the same law was ruled unconstitutional by a federal court, Bay State legislators finally passed a workable direct wine shipping law that will allow out-of-state and in-state wineries to ship wine directly to state residents. The new law was included in the 2014 budget bill (see page 257), and was signed by Governor Deval Patrick this morning. Set to go into effect on January 1, 2015, the new wine shipping law will make both wineries and Massachusetts wine lovers overjoyed.
Massachusetts is ranked among the most important states that still had not passed winery direct shipping law. Massachusetts is particularly important given the size of its population and its residents’ love of wine. Only four states have higher per capita consumption rates for wine than Massachusetts.
The new direct shipping law, passed as part of the 2015 fiscal year budget, provides the following conditions for shippers:
- Only bonded wineries may apply for a direct shipping permit
- Direct Shipping License Fee: $300/winery (separate permits required for each “affiliate, franchise or subsidiary”)
- Direct Shipping License Annual Renewal Fee: $150
- Shipments limited to twelve 9-liter cases per purchaser in a calendar year
- Reports to the state must be remitted annually
- Excise Taxes must be remitted on each sale
Over the next six months, the Massachusetts Alcohol Beverage Control Commission will be responsible for creating and making available license applications for direct shippers. We will report here on those developments as well as any others that impact direct shippers.
As wineries were applying for and beginning to use the new DTC shipping licenses for on-site sales to Arkansas consumers, we learned that some of the staff in the Arkansas Department of Finance and Administration were telling holders of direct wine shipper licenses that they were responsible for collecting certain local sales and use taxes. Wine Institute’s local Arkansas counsel has received a legal opinion from the Assistant Commissioner of Revenue, Policy and Legal of the Department of Finance and Administration stating that holders of a wine shipping permit are not required to collect any local taxes. Direct shippers are responsible for collecting and remitting only the statewide sales and excise taxes.
Wineries can register and file reports online through the Arkansas Taxpayer Access Point on the Department’s website at www.arkansas.gov/dfa or manually prepare and mail in the required forms. The state gross receipts (sales) tax rate is 6.5%, in addition to a state liquor excise tax that is 3% of the sales price. Direct shippers are also responsible for paying the $0.75 per gallon wine excise tax and a $.05 wine case excise tax. If the volume of wine being reported is less than one case of wine, round up. Sales and excise taxes must be reported on a monthly basis even if no activity occurred.
Annie Bones, State Relations – Wine Institute
Effective Monday, June 16, 2014, New Mexico went live with their TAP online filing system for Combined Reporting System (CRS) returns. Taxpayers who file the CRS return, regardless of if they currently file paper or electronically, will need to take action to create an account with the new system if they wish to file online. Filers that currently file this return online using the old NM E-Filing Services system please note: your current login and account set up in the older system will not transfer over to the new TAP system; you must register for a new account.
What you need to know about this changeover:
- If you file by paper for the CRS Return:
- No action is required, you can continue to file by paper. If you’d like to begin filing online, follow the steps outlined below to get set up with an account. Some tax accounts are required to file online; review this Tax Professionals page for more information.
- If you efile your CRS Return and have not yet filed for the current reporting period:
- You must create a TAP account and file this return before July 25, 2014; you will not be able to file using the old system.
To register for a New Mexico TAP account:
- Go to the New Mexico TAP Website and “Sign Up”
- Follow the prompts requested by the site; make sure you have:
- A valid email address. Each TAP profile requires a unique email address.
- A valid federal ID number such as a Federal Employer Identification Number (FEIN) or Social Security Number (SSN)
- Letter ID from correspondence mailed to you within the last 90 days; or Information pertaining to the business account you wish to sign up for
Questions? Comments? We’d love to hear from you! We are always available at Support@ShipCompliant.com or you can call us during the week at (303) 996-2356.
It’s that time of year again; the Kansas label renewal period is upon us. Kansas has pushed the renewal period back by a month this year so licensees will be able to renew previously approved labels from June 1st through July 31st. But, that doesn’t mean that you should procrastinate! Just like last year, Kansas will be utilizing the PRO system to offer a quick and easy substitute to laborious paper submissions. Licensees will be able to submit electronically with three simple steps; check which products they would like to renew, review the selection, and make a payment. It should take only a few minutes to complete. That will be one more item checked off your to-do list.
Making sure orders are up-to-date and within the boundaries of each state’s regulations can be a stressful and time consuming process every month. If you’re frustrated in any way with your current fulfillment processes, I highly recommend you take a look at ShipCompliant’s Fulfillment Management tools. We make it really easy to batch your club and daily shipments, print packing lists, check the temperature forecast for your packages, synchronize inventory levels, print shipping labels, and track packages, all while making sure that you stay in compliance with the laws, regulations, and reporting requirements of each state.
Fulfillment and compliance are highly dependent on each other. Some states require tracking numbers, carrier codes, and the name and license of the third party logistics (3PL) provider to be reported along with order data, which means your compliance department needs to know what orders have actually shipped, by who, and when. ShipCompliant Fulfillment Management seamlessly sends your orders to any of our 20+ compatible and integrated 3PL partners or to your in-house fulfillment team for processing. Once processed, tracking numbers are added to your account to automatically and accurately update the actual date of shipment and shipment status directly from the carrier so that orders can be accurately reported to state agencies.
That’s not all. Since orders are immediately visible at your specified fulfillment location through ShipCompliant’s Fulfillment Management page, any issues with an order — such as insufficient inventory or unsafe shipping temperatures — can be flagged by your fulfillment location or shipping department for you to view in real time and work together to resolve.
Once orders are shipped and tracking numbers are added into ShipCompliant, they are immediately available and ready to go to work! ShipCompliant’s real time integrations with the UPS, FedEx and GSO tracking services alert you of any issues marked by the carrier, such as failed delivery attempts, undeliverable packages, and much more, so you can prevent spoilage, returns, and be proactive with your customers. There are also valuable Analytics reports available to analyze your delivery metrics, unshipped orders, and delivery attempts, to name a few.
Lastly, there is no need to manually update order information in your eCommerce, wine club management, point of sale, accounting, or third party systems. Certified and integrated systems will synchronize the most up-to-date order data from ShipCompliant, and in turn, have all information effortlessly updated for consistency across all systems.
Ready to get started? ShipCompliant clients have these powerful tools available within the Fulfillment Management page in their account already. If you have any questions or would like to receive a customized training session with our Client Service team, please contact us.
Arkansas, the latest state to adopt wholesale label registration practices, has begun their first renewal period. The state recently sent out an email communication to all licensees with previously registered labels. Just in case you missed the email, here’s what you need to know:
- The renewal period will run from June 1st through June 30th, and requires that all wine and spirit labels registered prior to March 1st be renewed. Labels registered after March 1st will be valid through the end of next year’s renewal period (through June 30th, 2015).
- Renewals should take only a few minutes. The renewal fee is $20 per label.
- Renewals must be performed electronically and can be completed in bulk here: ar.productregistrationonline.com/renewalslogin.
- New labels (not renewals) in Arkansas can also be performed with a ShipCompliant login. If you don’t have a ShipCompliant login, set up an account with ProductRegistrationOnline here: productregistrationonline.com
- Arkansas Supplier Permits must be renewed prior to June 30, 2014. If you currently hold a Supplier Permit, you should have received a renewal notice.